AEM 220 Lectures - Lecture 1(1.21.08 Social changes...

Lecture 1 (1.21.08) Social changes: 1750-1914 • Increase in Population o Better nutrition o Medicine and hygiene o Potential mass markets • Increase in knowledge o Scientific Revolution o Industrial Revolution o Global trade • Political changes o Increase in money circulation o Consolidation of the nation-state o Periods of relative peace Changes in the Organization of Production: 1750-1914 From • Self-employment • Put-out system • Master-apprentice relationship To • Subsistence standard of living • Expropriation of surplus • International competitive pressure • Coercion • Destruction of the family and community relationship as known Wage Slavery • “Modern bureaucracy depends on a particular social structure: a citizen must not be able to survive on his or her own, but has to work for someone else.” (Charles Perrow, “Complex Organizations”) • 85% of U.S. working people work for someone else • Principles of bureaucratic organization o Specialization: ex. Pins. End of the pin, the stick, join them together, etcetc. o Formalization: ability to see job in relation to the whole o Hierarchy: you have to accountable to someone else Changes? • Society o Mass consumption o Mass education o Individualism • Increase in knowledge

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o The routinization of technology and innovation o The information Revolution o Constant increase in resources dedicated to science and discovery • Political changes o Relative decline of the nation-state o Acceptance of liberal politics and market economics o Globalization  Clothes made in China The New Paradigm • Everyone is an entrepreneur • The organization as a project team o Network organization o Dynamic organization o Temporary organization • Employment as option o Citizen work Objective of the Course Empower students by exposing and explaining a wide range of business management

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